Pakistan’s $250 million Panda bond issuance may give the country first-time access to China’s capital markets next week. Finance Minister Muhammad Aurangzeb said this on Saturday.
Aurangzeb told a press conference that Pakistan expected “good news” next week regarding access to Chinese capital markets through the Panda bond. The yuan-denominated issue will mark the first tranche of a planned $1 billion programme.
Reuters reported that the Asian Development Bank and the Asian Infrastructure Investment Bank will back the $250 million issue, the finance minister said. The structure adds multilateral support as Pakistan works to manage external financing needs.
Aurangzeb said Pakistan’s economy was showing signs of recovery, including higher exports and remittances. In addition, he added that the Iran war and the closure of the Strait of Hormuz had placed a strain on the country, as Pakistan depends heavily on imported fuel and gas.
The comments came after the International Monetary Fund released about $1.32 billion in fresh funding through two loan disbursements under ongoing programmes. Pakistan has relied on multilateral and bilateral financing to support reserves and meet external obligations.
Pakistan had considered Eurobonds and commercial debt to replace a $3.5 billion United Arab Emirates facility and to manage its foreign reserves. Saudi Arabia later provided $3 billion in additional support to help bridge the financing gap.
